BSNL is preparing to make profit, may give VRS to 18,000 employees

Government telecom company Bharat Sanchar Nigam Limited (BSNL) has improved its functioning in the last few months. The number of BSNL subscribers has also increased. The company has planned to reduce its existing workforce by about 35 percent to strengthen its balance sheet.

The Department of Telecom (DoT) may soon seek approval from the Finance Ministry for BSNL’s second Voluntary Retirement Scheme (VRS). A media report quoted a source with knowledge of this matter as saying that the board of BSNL has sent a proposal to remove 18,000 to 19,000 employees through VRS. The company has proposed VRS after the instructions of the Communications Ministry. After getting approval from the Finance Ministry, it will be presented before the Cabinet for approval.

BSNL has demanded about Rs 15,000 crore for VRS. This company spends about Rs 7,500 crore annually on the salaries of its employees, which is about 38 percent of its revenue. BSNL plans to reduce this expenditure. The company will soon launch eSIM. Its 4G network may be available across the country by June next year. After this, the company plans to launch 5G network.

However, 5G network of big private telecom companies like Bharti Airtel and Reliance Jio is present in a large part of the country. In this respect, BSNL is far behind these companies. The company has said that it will start eSIM service by March next year. After this, 4G network will be made available across the country by June. The company does not plan to increase tariffs soon. Recently, Telecom Minister Jyotiraditya Scindia had said that the company is recovering financially. BSNL plans to launch 5G service in the middle of next year. Scindia had said that BSNL’s work is getting stronger. It is very important for a country like India to have three-four telecom companies. He had said, “In the last three-four years, the company’s revenue has increased by 12 percent. During this period, the company’s expenditure has decreased by two percent. For the last three years, the company has been in positive terms of EBITDA.” The company plans to install about one lakh towers by June next year.